- Business
Bombas Socks: How to Build a Billion-Dollar Business from Selling Socks
Who would have thought that socks, one of the most basic everyday products, could form the foundation of a billion-dollar company? Bombas Socks is proof that a simple product, when combined with innovation, superior quality, and a strong social mission, can achieve tremendous financial success. By integrating commercial success with social impact, Bombas has shown that doing good isn’t just…
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Supporting MSMEs as a Foundation of the People’s Economy
Micro, Small, and Medium Enterprises (MSMEs) are widely recognized as a crucial foundation of Indonesia’s economy. In a country with a vast and diverse population, Indonesia relies heavily on this sector to drive inclusive and sustainable economic growth. MSMEs play a significant role in creating jobs, increasing household income, and expanding the economic base, previously dominated by larger industries. Beyond…
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Important Muslim Business Ethics Part 1: Amanah
In Islam, business ethics serve as a fundamental guideline that every Muslim must adhere to. One of the most essential principles in conducting business according to Islamic teachings is amanah, or trustworthiness. Amanah refers to honesty, transparency, and trustworthiness in all transactions. In this article, we will discuss how amanah is an integral part of Islamic business ethics. 1. The…
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Cost of Goods Sold (COGS): Important to Know Your Product Costs
Cost of Goods Sold (COGS) is a common term in accounting, especially in financial statements for businesses. COGS refers to the total cost incurred to produce goods or services sold by a company during a specific period. These costs include various elements directly contributing to the production of those goods or services. In this article, we will discuss the definition…
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OPEX and CAPEX: Two Distinct Costs in Business
In running a business, it is crucial to understand two major types of expenditures commonly found in financial reports: Capital Expenditure (CAPEX) and Operational Expenditure (OPEX). These two types of costs have distinct characteristics, functions, and accounting treatments, each impacting a company’s financial and strategic decisions differently. What is CAPEX? CAPEX, or Capital Expenditure, refers to expenses incurred by a…
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Causes of Differences in Fiqh Opinions and How to Handle Them Wisely
Differences of opinion (ikhtilaf) among scholars is an inherent feature in the study of Islamic jurisprudence (fiqh). These differences have been evident since the era of the Companions (sahabah) and the following generations of scholars. They arise due to the dynamic nature of Islamic law, which is both comprehensive and adaptable to the complexities of human life. Rather than a…
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EBITDA: How to Understand Operational Profit
EBITDA is one of the essential financial indicators used to assess a company’s performance. This term is frequently used by financial analysts, investors, and management to understand how efficiently a company generates profits from its core operations. This article will discuss what EBITDA is, how to calculate it, why it is important, and some criticisms of its use. What is…
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Return on Assets (ROA): Are Your Assets Maximized?
In the modern business landscape, ensuring efficient utilization of company assets is essential for long-term profitability and competitiveness. One key metric that helps measure how effectively a company is using its assets is Return on Assets (ROA). ROA provides insights into how much profit a business generates from its assets, making it a valuable tool for management, investors, and stakeholders.…
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Return on Equity: How Shareholders Measure Their Returns
Return on Equity (ROE) is one of the most widely used financial metrics by investors to assess the profitability of a company. It provides a clear picture of how efficiently a company is using its shareholders’ equity to generate profits. In simpler terms, ROE shows how much profit a company makes with the money shareholders have invested. This article will…
Read More » - Islamic Economics
Islamic Ruling on Mudharib (in Mudharabah) Taking Profits Before the Final Calculation
Mudharabah is a form of partnership in Islamic economic systems involving two main parties: the capital provider (shahibul maal) and the entrepreneur or manager (mudharib). The capital provider supplies the funds, while the mudharib manages the business using those funds. Profits are shared according to a pre-agreed ratio, while losses are borne by the shahibul maal, except when losses occur…
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